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The Expected Market Return Is 9 Percent

Question 34

Multiple Choice

The expected market return is 9 percent.The risk-free rate of return is 1 percent,and XYZ Co.has a beta of 1.4.The risk premium is

A) 8 percent.
B) 11.2 percent.
C) 12.2 percent.
D) 10.3 percent

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